From left, NSE vice chair Bob Karina, Kenya Airways CEO Sebastian Mikoz and NSE chief executive Geoffrey Odundo during KQ's relisting at the bourse on November 29, 2017. PHOTO | SALATON NJAU | NMG
Relisting comes as NSE experiences rebound in activity as investors flock back after months of political turmoil.
The airline's shares were suspended from trading at the bourse from November 15 to 28.
Treasury and 10 local banks converted their debt worth more than Sh44 billion into equity, effectively making them the airline's majority owners.
National carrier Kenya Airways' #ticker:KQ 5.3 billion shares are back to trading on the Nairobi Securities Exchange (NSE) #ticker:NSE after completion of the airline’s debt and equity restructuring.
KQ, as it is popularly known, has listed additional shares on the bourse after a two-week suspension to enable a share split and simultaneous consolidation of the company’s stock which forms part of Kenya Airways' capital transaction.
The airline's shares were suspended from trading at the bourse from November 15 to 28.
Following the restructure, the government’s stake has increased to 48.9 per cent from 29.8 per cent, KQ Lenders Co - the special purpose vehicle formed by 10 banks - is at 38.1 per cent, KLM Royal Dutch Airline at 7.8 per cent, KQ’s Employee Share Ownership Scheme (ESOP) at 2.4 per cent and other shareholders at 2.8 per cent.
“The restructuring makes us competitive and sets us on a path of profitability with a healthy liquidity. We appreciate all the work that went into ensuring we continue to turnaround this airline and secure its future,” said KQ chief executive Sebastian Mikosz on Wednesday, adding that the move is another step towards securing the airline's growth.
The listing of new shares comes at a time when the NSE is experiencing a rebound in activity as investors flock back to the bourse following months of political turmoil.
“We applaud Kenya Airways for boldly using this process of a debt-equity restructuring, which we believe will result in the company having a lower debt profile and moving in onto a better financial footing. The company’s continued growth and expansion supported by the capital markets is a fine example of the abundant opportunities our market offers,” said NSE chief executive Geoffrey Odundo during the bell ringing ceremony to commence the carrier's relisting.
